Eos Energy Enterprises, Inc.

Q1 2026 Earnings Call — May 13, 2026

Mark Strauss (JPMorgan): Good morning. Thank you very much for taking our question. I just want to start with Frontier Power. I just want to make sure I'm thinking about this right. The initial investment from EOS and from Cerberus, can you talk about how many gigawatt hours that would finance? And then to the extent that this does indeed grow like you envisioned, can you just talk about kind of the capital stack for future projects, what the equity check would look like, and what EOS's potential contribution to that equity check would be? Would you continue to participate or would the ownership percentage kind of dwindle down over time?

Management: Thanks, Mark. I think the initial, as we discussed, the initial capital cycle we're thinking about is leveraging that with debt. We're targeting around a five times leverage. That's going to depend on where we come in. On the rights offer, I think on the incremental questions of future investment and equity where we go from there. Like, look, the program is designed to recycle capital in from the returns on projects to continue to grow. You know, it's the classic flywheel that I talked about in my prepared comments. But I think it's a little bit too early to talk about what we would do as we're launching the platform, what we would do in the future here. So we'll take that as it comes. But we're very excited about being able to pull everything together because it's going to speed up discussions as we go through the pipeline and opportunities that we have and get us to faster order closure.

Okay. Okay, thank you. And then just a quick kind of accounting follow-up, I guess. Given the 49% equity, yeah, 49% stake, can you talk about the rev rec as you're delivering products? Will you recognize that fully in the income statement? Is there any kind of below-the-line adjustments we should be thinking about?

Management: Yeah, I think this would be a typical equity investment. The revenue would come through the income statement just like it would if it was a direct sale to a third-party customer. The only difference would be we will break it out as a related party line up at the top of the income statement. But otherwise, you will see the full impact of the revenue in the income statement. Yeah, Mark, I think it's important just to note it's arm's length. Frontier will have their own board of directors. They'll have their own management team, which will be announcing here shortly. I'm pretty excited about the people that we're talking to come in and run this, but everything will be fully negotiated, as was the capacity reservation agreement for the two gigawatt hours from a pricing standpoint, down payment, and terms on that contract. It's all done as an independent company, independent third party. With our minority stake in that, obviously the minority stake will be treated from a frontier standpoint below the line.

Thank you.

Martin Malloy (Johnson Rice and Company): Thank you. Congratulations on all the progress. My first question is on Frontier Power. Just wanted to try to maybe get a sense of customer conversations that you've had around this and how soon we should anticipate offtake agreements or project announcements utilizing this structure?

Management: Yeah, look, I think this is, as Joe talked about in his prepared remarks, we have a number of customer opportunities in our pipeline that are working on financing as one of the critical components of a successful project. This creates an attractive alternative for financing, a lower cost to capital, given the way we're structuring this. So we're going to make the introductions to a number of customers. You see in the initial pipeline, there's a handful of projects that we're in active discussions on right now. I think there's a good chance we will be delivering on volume associated with some of those initial projects in 2026. But this really builds momentum going into 2027 and beyond as well.

And Marty, I think the big thing here I'd like to talk about, the advantage that it gives us is, you know, we were doing the lion's share of this work on a lot of the opportunities in the pipeline, but doing that transactionally on a project-by-project basis, this now gives us a structured platform with the insurance wrap, raise the debt, get investment grade characteristics, have an equity stake, allow our shareholders to participate in the returns on financing, and really accelerate the conversations because you're not going through the process of, let me apply, let me then pick my technology, then let me go through and understand my revenue stack, then let me go into my financing, then let me go and do how I'm gonna construct and build and go through that process to get to the first discharge cycle off the system. We think with this setup, we're gonna be able to accelerate all that because we'll bring a pre-structured solution to customers as they come with projects for us to be able to sell our technology into.

Okay, that's very helpful. And then for a follow-up question, just wanted to ask about reaching adjusted gross profit margin positive. I believe previously you'd said second half 26, and with the operational improvements that you cited, can you give us an update there and degree of confidence in reaching that?

Management: Yeah, Marty, I mean, we're still targeting gross margin, adjusted gross margin positive later this year, really driven by a lot of the things that John talked about in his remarks. He's making great progress on cost out both materials, direct labor. And then as we get the Thornhill facility up and running, continue to see improvements in indirect labor and overhead and throughput as well. So that's really the driver of it. And we believe we will achieve positive adjusted EBITDA before the end of this year.

Great. Thank you. I'll turn it back.

Hannah Velazquez (Jefferies): Hey, thank you. Good morning. This is Hannah Velazquez on for Julian. Congrats on the quarter and congrats on the Frontier Power announcement. Similar to my other peers, I had a question on that one. So just to give us a sense of the backlog impact I realize the 2.6 gigawatt hours that you announced is as of quarter end, but what would your backlog be if we included the frontier power addition? Is it as simple as adding the two gigawatt hours or is it on a project by project basis? I'm really trying to get a sense of what 2Q could look like from a backlog expansion perspective.

Management: Yeah, look, I think it's too early to give where the backlog is going to be because there's other things in motion. What we said was, you know, you don't do it on a one-for-one basis because there's a project in backlog that will probably be converted and financed through Frontier, as I said in my prepared remarks, but we're not prepared today to give a midpoint or a forecast on backlog at the end of the quarter.

Okay, thank you. And just as a follow-up question separately on ASPs, I know you talked a bit about the downward trend line being attributed to mix, but is a portion of that downward or that deflation related to the competitiveness of lithium iron phosphate? Any detail there would be helpful, especially to get a sense of where ASPs could trend longer term.

Management: I think looking at the pipeline is the best indication of where we see longer-term trends. And it's really driven by larger-scale projects that we're currently quoting within Density Core and the associated efficiencies gained with those larger-scale projects. But I think the best view of longer-term ASPs from our perspective is what you see in the pipeline. I mean, those are active projects that we're actively bidding on, and that's how we're looking at it.

Thank you.

Patrick Ouellette (Stifel): Hey, it's Pat for Steven. Thanks for taking the questions. You reiterated the initial production for the second line for the end of 2Q. Just curious if you could touch on any key steps between now and then, whether that's yields, throughputs, things like that, and then how you're thinking about the ramp of the second line through the second half of the year.

Management: Yeah, and I think that before John jumps in and goes through where we are on that, what I would say is when we go for our weekly review of progress up there, the team is making phenomenal progress in bringing the lineup. And every week it looks like a totally different facility from the week before. And in fact, this week we had a candidate come in to interview for a position at EOS who was a customer, and they had been in Turtle Creek, and the interview started off with, I'm really impressed by what I saw because I was here two years ago. When can I start? And I think those are the types of things you like to hear where people have reference points, and I think John and the team has done a great job positioning us to be able to deliver, and you see it in the numbers, but I'll turn it over to John to talk through where he's at with the program of really implementing lean manufacturing as the way we work.

John (Title): Yeah, so the line's completely installed. We're powering up all sections and doing debug currently. So we're on track to basically start production in June.

Okay, thank you. And so with the second line coming online and the rollout of Frontier USA, is there a way you're thinking about production and deployment off the two lines together and allocates allocated just say to existing backlog and to the Frontier USA?

Management: Yeah, so I think, look, a little bit early to comment on that one. We've got a range in the revenue, and that ties to how the lines ramp. What we're being very careful of is how the lines ramp up before making a commitment, really seeing what's happening. We feel really good about it, but we want to see where we're at. We have a lot of optionality that we're going through and looking at as far as running two lines in two facilities, running one line in one facility, potentially future consolidation into one facility. Those are things we're going to be working on here over the next couple months, and we'll come back with news on that as we solidify our plans around what we're going to do.

Understood. Thanks a lot.

Jeff Osborne (TD Cowan): Thank you. Just two from my side. Nathan or Joe, I'm trying to understand, since you brought up project financing, that seems to be a big topic on the call. Can you just walk through what the historical challenges were around traditional project finance with traditional banks and then what led you to this structure? I'm just trying to understand what those obstacles were and then if that's ever an avenue for future growth beyond the frontier USA.

Management: Jeff, we would continue. I wouldn't call it obstacles. What I would say is we're coming at this with a pre-engineered solution. So the same banks that we're talking about will be the same people that provide debt into Frontier Power. What we've structured around this is instead of doing this on a transaction-by-transaction basis, we're doing it on a platform basis where you have the debt there wrapped by the insurance. So rather than going in, understanding, talking to the bank, bringing in Ariel Green, we had all the elements there before. We're putting it in a structure now where we can offer it faster and in an offering that allows the customers to get to closing and start an NTP notice to proceed faster. I think when you look at this, we're excited about where we are because near term, the frontier pipeline far exceeds any implied, going back to the earlier question, any implied capital raise in the platform. We've got a pipeline of opportunities that allow us to move faster and bring in expertise to help us close the job, close projects. At the same time, it allows us on the EOS technical stack to really focus on running the company, executing, delivering, taking costs out, building and improving around our controls architecture and Don OS, and having alongside of us a financial team and financial experts that can help us accelerate those conversations with customers.

Got it. And then just switching gears, you mentioned the Southeast utility. I think there was a large project last summer in 2025 that went live earlier this year. Can you just walk through what's specifically involved to move an existing project that's already installed and, you know, producing electrons at a four-hour pace, moving to 10 and then installing Don OS? Is that, you know, a complete overall of the power electronics, but the battery array and systems themselves are in place and not changed? It's just unclear what led to that change.

Management: Yeah. Yeah. So Jeff, it depends. So like, like there's like, there's a couple of things in the question, so I'll try thinking one by one. So a four to 10 hour system with EOS, there's nothing to change other than the way you operate the system. That's the beauty of the technology. The upgrade to Don OS, that's a change out of the soft, the software. Obviously we need the new printed circuit boards installed on the equipment. And there are, depending on the generation of technology, like we've talked about, like we've evolved our BMS over time for the Z3. There's three configurations out there. Depending on what configuration you have, like configuration one and two, you've got to change the wiring plus the boards. Configuration three is boards, and you run the BMS. We do this on a project-by-project basis, but the performance that it unlocks and delivers to the customer warrants us doing this. Like we ran a, as an example, we ran a one hour cycle yesterday, one hour at 84% round trip efficiency. That's the type of performance we want to deliver in the market. And it's going to open up new revenue, revenue stacks for our customers and also allow us to put more product out in the field.

Perfect. Very quickly, one last follow-up on Frontier. I think Bloom did something similar years ago with Southern Company and had challenges around field performance. Can you just acknowledge what the reliability requirements are as part of Frontier Power as it relates to how your units have been running the last year or so relative to the expectations of that financial structuring? Is there any material changes that need to play out as it relates to field reliability over time?

Management: No, Jeff, none at all. And I think we've just got to be careful here. The technology, the underlying technology in the batteries work. As I talked about in my prepared comments, this is unlocking the performance that were in the batteries with the software that we need. Now, what's interesting is we've brought some people in to work inside the company that have many years of experience owning and operating lithium ion systems. And lithium-ion has the same thing that we're talking about. What our new project lead says is that she remembers moving lithium-ion battery packs around the balance. You don't need to do that with our system. So this is something that's there, and we think our software controls and unlocks performance that isn't there for other technologies. And one of the challenges that we had in our first generation that we put out on the Z3 is for speed to market, we installed an underlying printed circuit board, and a core BMS that was used in lithium-ion. It just doesn't match up and give us the level of granularity you need to maximize performance.

So getting a system, Jeff, that can go from a one-hour at 83% round-trip efficiency up to a 10-hour, 12-hour discharge that then gets up approaching the 90s, to be able to do that on one system, as far as we know, there aren't any other products out there that can do that. You're talking about like if you look at a flow battery, like a vanadium flow battery, very low footprint power density. And what we do, 6.4 megawatt hours, a vanadium battery probably does under a half a megawatt at 50% round trip efficiency. We're in the mid-80s on regular cycles. So we like the performance that we have. We like what the team is developing. And we like having Frontier Power alongside of us to accelerate decisions. And yes, as in any product, we're always going to work on improving the reliability. And what Frontier Power unlocks, Jeff, and kind of the thing for us that opened the door was like when you look at how we designed and dented, right, so you take this flexible battery module, this low ability to control each module with a controlled platform.

With Indensity, a light bulb went off where I was sitting there talking to Jeff Bornstein, who's on our board, and saying, you know, Indensity is like an aircraft engine. Indensity is like an aeroderivative gas turbine. We can swap out modules as you have to and maintain main plate performance. What we're going to change with energy storage with Indensity is is we'll guarantee nameplate for the life of the project. There's no more talking about augmentation. It's running it like an industrial asset, like you see with a gas turbine or with an aircraft engine, that you don't do the service while it's on the wing of the plane. You swap it out and keep going. That's what we've designed, and we're excited to bring that to market.

Perfect. Appreciate the thorough response.

Ryan Finks (B Raleigh Securities): Hey, good morning, guys. Thanks for taking my questions. Hey, Jeff. First, can you talk more broadly about the competitive landscape and maybe any additional color on what customers have been indicating in terms of duration preferences?

Management: Look, I think consistent with what we've said historically, and we see it increasing, is customers continue to need longer duration solutions. Market fundamentals have shifted in many of the markets. You're seeing programs like the NYSERDA bulk storage procurement. You're seeing PJM come out with the reliability backstop. Ofgem's cap and floor program in the UK that we've talked about previously. I mean, markets are recognizing that they need longer duration for grid reliability, as well as to service the demanding load profiles that the increase in data centers is having on the grid. And long duration is the perfect solution for that. Joe already talked about the ability to run one-hour cycles, 12-hour cycles from the same asset. When we look at the erratic use cases of the hyperscalers, being able to ramp up and ramp down within milliseconds and do that many, many times a day I mean, it's an abusive use case, and our battery is specifically engineered to handle that, and we're very excited about the technology and how it's designed to handle that. All of that lends itself to increasing durations and flexible assets, which we've got in the Z3 technology.

And Ryan, what I would just add on top of Nathan's comments is to simplify conversations, we make it sound like you're running one cycle a day, every day, multiplied by day. And that's not how the grid works. That's not how these assets will be utilized. I don't view, you know, Nathan used some words about like a harsh, and that's just the way AI is going to work. Like an inference, like if we all go on our phone right now and type something into an AI engine, you're creating an inference session. You're creating a spike in power demand. You're going to have to do that in milliseconds. The product does that. When you do a large learning on AI, you need power for long periods of time. We're the buffer and the asset that can do both of those things successfully. And the way density is set up, we can do both of those things on the same installation. Why? Because Dawn OS can be parsed out to different parts of the system. So you can run an inference system on one part of it, and a large learning system or long duration on another part of it. It's about flexibility and giving the grid the shock absorber it needs as the power demand changes over time.

And it protects core fossil assets from that variability. It's not just about, hey, we're doing solar plus storage or wind plus storage, it's anything plus storage that gives you frequency regulation. And we've got a product that can do it, that's proving itself every day out in the field, that customers are coming to us. And with Frontier Power, we now have the ability to accelerate those conversations.

Appreciate that. And then maybe a follow-up on that last comment. It sounds like Frontier Power will be key for order conversion. Are there any other gating items that you feel like you've addressed with customers in recent months that should benefit order conversion this year?

Management: Look, I think some of the biggest things that are going to help order conversion are going to be the need for power and doing things faster than we've ever done before. I think, again, showing the operating performance of the product out in the field and then taking use cases from customers and running those use cases and showing that we can meet those use cases, that gets you to those decisions that are going to convert orders. We feel good about the pipeline. We have the relationships we're building on. Nathan talked about Turbinex. I think it's great to be with somebody like Turbinex that comes at this market with the philosophy of bringing aero derivative type technologies to different load cases and partnering with them because you got to remember like, this isn't just like you plug – this isn't building a Lego set, right? You don't just plug things together and there's your power plant. You've got to have a controls architecture underneath and a controls architecture on top of it. And the reason why we're working with people like Turbinex, people like a FlexGen, which we've already talked about, is we can align those controls beforehand and get to power faster. Getting to power faster is what the market and our customers need, and that's what we're building.

Great. I appreciate it, guys.

Management: Thank you.

This concludes the question.

Joe Mastrangelo (Title): Well, you know, thanks everyone for listening today. The question, you know, we look forward to continuing to build a great company. The one thing I'll tell you that won't change about EOS is the dedication of this team to building a great company. We're really excited, obviously, about the Frontier Power Partnership that we're building, the ability for our shareholders to participate in that makes me very excited personally because they've stood by us through trials and tribulations. We've continued to grow the company, continue to improve performance, and continue to build something that we'll often be proud of. So thanks again, everybody. This concludes today's conference call. Thank you for participating. You may now disconnect.

Q4 2025 Earnings Call — February 26, 2026

Analyst Stephen Gengaro (CIFL): Thanks. Good morning, everybody. You know, my first question is on the guidance and maybe two parts. One is, a couple months ago, you had a pretty high expectation for the fourth quarter, and clearly you fell short. And now we're looking at, you know, a pretty big ramp in 2026. How do you think about the components of guidance and sort of de-risking the parameters you put out versus guidance historically?

Executive Name: Morning, thanks for the question. First, like, you know, you look at the range as I talked about when we talked about the guidance in of itself. We're looking at the improvements that John has implemented coming out of fourth quarter, looking at the backlog of orders that we have to get to the bottom end of the range, then looking at the opportunities that we're working on, the fact that we're bringing a new line in to give us the top end of the range. But we've tried to really look at how we can change our discipline as a company to not have happen what happened in 2025. So the range is 100 million, the midpoint is 350. What hasn't changed about the company is the demand that's out there for the product. What we're trying to do in 2026 is better control our scale, get the manufacturing throughput quality and margin expansion that we need, and really look at where we think we can land without going for a degree of difficulty that's a 10, but coming in with something that we can manage to over time.

Analyst Stephen Gengaro (CIFL): Now, that's helpful. And then just, I imagine this is correct, but when we think about the quarterly growth, I mean, I would imagine the 1Q would be above 4Q, but the low point and then escalate throughout the year. Is that a reasonable pattern?

Executive Name: Well, look, Stephen, so part of what we have coming in, and, you know, we don't give quarterly guidance, but from a standpoint of coming into the year, you know, we're coming off a high point. We're delivering the customer schedules. I think we'll be around the fourth quarter number as we look at, like, what we have to deliver to customers. And there's also commissioning revenue in there as well. And then from there, sequentially grow.

Analyst Julian Dumoulin-Smith (Jefferies): Hey, good morning, team. Thanks for the time. Can you guys comment a little bit about what exactly those bigger projects that you're talking about are? Like which ones in particular seem particularly ripe, right? Again, just to maybe track against the milestones this year and what would materialize? And also, if you can speak a little bit against, you know, you've got a materially larger backlog in aggregate. What's the duration of that backlog when you think about it, just given that, you know, call it 300 of it is burning off this year, if you will?

Executive Name: Julian, great question. Look, I think we go back on the material large stuff. But look, I think we all know the industry needs power, needs power quickly. But at the same time, we still operate in a framework where approvals and, you know, queues are long, so we're kind of hedging that. But like, you know, Nathan talked about two large projects in NYSERDA that, when approved by NYSERDA as part of their bulk storage, would go into delivery almost immediately. So that's two of them in there. We've talked about PJM and what we're doing with Talon. There's other projects that we have that we haven't discussed with large hyperscalers that could potentially come in. And then Nathan talked about what appears to be, when you look at the surface, they look like small projects, but they're small projects with a big pipeline of opportunity that you deliver and grow and continue to deliver. And we just got to work through that. We'll keep everybody updated on that as we move forward from there.

Analyst Julian Dumoulin-Smith (Jefferies): Got it. And then just if I can follow up there, the defense space seems intriguing here. Can you comment about that end market and the opportunity you see there? What does a project look like in that space, size, duration? And just even elaborate a little bit more about what you guys were talking about a second ago in the timing of seeing some of that come to fruition.

Executive Name: So defense, I think you start off with NDAA, which is how the Defense Department of War purchases. In the NDAA, they're being told to buy American products, and I think we have that American product. As we go through that, there's a lot of things we have to go through as far as working with different branches of the government to get approval. I think a big thing that helps accelerate us is the due diligence process that we went through with the Department of Energy to get our loan. But like we're working through across all branches of the military to see what the needs are. And like what we're looking at is what do they need and they also have, there's also large power growth that they have and how do we meet those needs and then we go through and show them how the product is. But also as you work with the military, there's things that we're doing to make sure that we hit all their requirements because we want to hit the ground running. But that's something that we'll continue to work on and we are working on and we do spend a significant amount of time down in Washington walking everyone through what the technology is capable of.

Analyst Julian Dumoulin-Smith (Jefferies): Got it. Excellent. Thank you for that. And then lastly, if I could just ask just given where you are coming out for 26, how do you think about the ramp of line three and four, right? So, you know, how do you think about when and the timing and scaling of that, right? Obviously you got line one and now line two here, but three, four, four of a 27 question, right?

Executive Name: And I think Julian, like this goes back to disciplined execution, right? It's a great question, right? So John, John's taking us into a new building and the new building changes the game from a throughput efficiency and cost. Turtle Creek is a fully functioning factory that's up at 2 gigawatt hours of production. It hit its nameplate capacity coming out of 2025. But if you have a lean mindset, you're constantly looking at how to get things better, how to improve on things. That goes with how you operate your manufacturing, but also how you implement capacity expansion. So what we've told John is come up with a plan that we can execute and implement lines within the window of when a customer orders to when they ship. So as things come in, we'll be able to do that. What John has done in his time, not only did he increase output 80% in the fourth quarter, if you look at quarter over quarter sequential manufacturing output, he also went in and revamped our automation partnerships.

Got us in with tier one automation providers, broke up how we were doing the different pieces of that and positioned those suppliers to be able to come up with a framework agreement approach with them where we can put a signal in to them and they can deliver faster than what we're doing on line two today. Line two today, part of what's happening there is it's a new building and there's a lot of work that we got to go through and we want to make sure that we get that right and we get that ramp right and the transition and balancing between the two facilities.

Analyst Mark Straus (JP Morgan): Yeah, good morning. Thank you very much for taking our questions. I'm just curious if you can comment on the competitive environment that you're seeing recently. Obviously, you guys are making good progress with your backlog, but one of your publicly listed peers that's traditionally in lithium-ion, they have really been talking up their long-duration pipeline the last couple of quarters. You know, there's a very large project, long-duration project up in Minnesota that just recently got announced. Just kind of broadly speaking, I know those are completely different technologies in both of those cases, but just kind of broadly speaking about the competitive environment would be great.

Executive Name: Mark, I think first off it points to what we're showing in our backlog about longer duration discharges coming to fruition. I think it's great to have other companies that are doing it because it just goes to show that what we've been talking about for five years, the market's now there. I've said this many times, there's many different use cases and I always draw the correlation of energy storage is going to look like gas turbine technology over time. You have different types of gas turbines that do different things with different efficiency points. So I think what was announced in Minnesota, delivery in 2028, is a great example of people looking for longer duration energy storage, longer than what we do. At the same time, Nathan showed our pipeline is up above 40% for longer duration. And it's now becoming 40% of our pipeline. Sorry, I misspoke. But it's becoming more and more. And I think established players, there's a market out there for that product. I think we've come up with the work that Francis has done and the team. We've come up with a solution that delivers in that direction, four to 16-hour spot, which is going to be very important.

And look, we've been running load profiles here in our test facility in Edison, New Jersey, using the load profiles of data centers, and our technology matches up great with that. So we're encouraged by that, but there's a lot of demand out there, and I think it's great there's other players. It's going to be a competitive marketplace, and I think we have a product that competes.

Analyst Craig Shearer (Tui Brothers Investment Research): Good morning. Thank you for taking the questions. Can you opine on the potential margin deltas, gross margin deltas between U.S. and international orders? Does American-made help in any way internationally to the degree some trading partners want to right-size trade balances on a national level? And can you give some color on the timeline for that foreign power company national lab testing and the level of prospective order flow should they deem you're having the most optimal solutions?

Executive Name: Craig, just a couple of things inside of that. I think where we're seeing interest in our product internationally has less to do with politics and more to do with performance. I think people are looking at what the product delivers and less about trade balances. I think having a product where we go through and talk about the intrinsic value of it is what's attracting our customers, whether that's domestic or international. I think we're starting to plant seeds, starting off in Germany, and obviously we have a big pipeline of opportunity in the UK that Nathan talked about. Just on your last point here, the customer that Nathan talked about is a global utility that's doing testing in the United States at a lab that is tied to a project for the NYSERDA program. By the way, that testing is great. We love doing that because it gives us data to show people about how the product performs and put this through its paces. Doing stuff like this, that's what brings out intensity and improved performance on the product that we have out in the field.

Analyst Craig Shearer (Tui Brothers Investment Research): And would one assume that international sales are going to be slightly lower gross margin?

Executive Name: No, I wouldn't assume that.

Analyst Craig Shearer (Tui Brothers Investment Research): Okay. And my last question, and I apologize if my quick math is incorrect, but it looks like you burned through maybe $65.75 million in operating cash flow before working capital changes in the quarter. Thoughts about tempering that bleed as you move in the positive gross margin in the second half of 26?

Executive Name: Look, our goal, as Nathan talked about, we've capitalized the company. We are focused on being good stewards of that capital. I think as you look at that, one of the reasons why we removed the going concern for the company in this quarter is that we see a trajectory to be able to manage the company strategically and for the long term. And then obviously, like, there was a ramp into a build. There was a ramp into a build plan that then levelizes, but then will ramp again. So we managed through that, but, like, as we look at where the company is, we have cash to be able to grow it over the long term.

Analyst Jeff Osborne (CD Callen): Thank you. Just a couple quick ones. I think last quarter you mentioned that the yield on the bipolar line that started, I believe, in July was 98%. I was wondering what the fabrication yields were in the fourth quarter.

Executive Name: Yeah, John, take that one.

Executive Name: So the bipolar yields in the growing from there. So we're basically, within January, hitting the target. We've reduced that significantly, and we'll continue to do so. And we did not anticipate that with the automation. The goal for that automation is 97% for special. And we're well on our way there.

Analyst Jeff Osborne (CD Callen): Perfect. And then can you just touch on, spend a few seconds on what sort of field performance has been, safety, reliability, commissioning schedules relative to expectations?

Executive Name: Yeah, so Jeff, I don't know if you heard, I don't know where we dropped off before. Look, we continue to go through and execute out in the field, bringing a new product online, operating out, operating. We were doing our operations meeting this morning and continue to see good cycles out in the field, as Francis talked about. We continue to learn on each cycle and incorporate those things back into the install base from a commissioning cadence standpoint. It's a mix and cadence of things where there's permitting challenges, there's bringing the site up to speed, there's getting our stuff up and running, there's integrating everything, and we work through that with the customer on a customer-by-customer basis. But if you go back to that page I showed, we ship to 10 customers, recognize revenue on 18 customers, and that ties back to the commissioning that we have.

Analyst Jeff Osborne (CD Callen): And just very quickly, are you capturing higher price as the duration use case extends out to six, eight hours and beyond, or is pricing consistent with a sub-four-hour relative to longer duration?

Executive Name: Well, I mean, Jeff, I think it all depends on how you look at that. I think when you look at the value proposition of EOS and you look at our ASP in the backlog, the ASP in the backlog is higher than what you would expect for a shorter duration product. What we do is we sell on a levelized cost of storage basis, which is a little bit higher on the CapEx side, but a lot lower on the operating cost side. And that's what the customers evaluate to make their purchasing decisions.

Executive Name: Thanks, Jeff. I am showing no further questions

at this time.

I would now like to turn it back to CEO Joe Misrandolo for closing remarks.

Executive Name: Yep. Thanks, everyone. And again, thanks for the question and the continued engagement. A couple points I want to close with. First, you know, demand for long-duration, domestically sourced energy storage is not a question. The grid is changing. The load growth is real. Whether it's AI electrification, industrial reshoring, these are structural changes to the power grid in the United States, and they're not cyclical. The market is moving towards solutions that match what we bring to the market, and that's how we've positioned EOS for the long term. Second, 2025 was building a foundation, strengthening our balance sheet, scaling manufacturing, standardizing our product architecture, improving operational cadence. We delivered great revenue growth. It reflects the progress that we've made. It's not linear yet, but it's directional and it's improving. Third, 2026 is a year where we have to show disciplined execution. Our guidance reflects what we believe we control as we sit here today. We'll keep everybody updated as we go through the year and where we wind up.

I feel good about where the team is positioned and execution improves predictability improves so we know we've got that's what that's ultimately where we need to focus on and that is where the team is focused on a day-to-day basis and then profitability for the company look it's a scaling equation you know on an automation you know how we move material efficiency bring a lean mindset finding waste eliminating waste resetting it going back and doing it again and again again and you see the sequential improvement in margin that we need to continue until we become margin profitable, and that's the goal of the company to deliver long-term, valuable shareholders and customers. Look, we strengthen our liquidity. It helps us operate the company more strategically. It gives us runway to be able to execute. EOS is an infrastructure business, right? We are infrastructure businesses are built on discipline, consistency and operational trust. That's what we're building and that's what we have to show and deliver. We appreciate the questions and the focus and really the attention to EOS across the board of all of our stakeholders.

We look forward to demonstrating this continued improvement and progress quarter over quarter as we build a great energy infrastructure company. Thanks for listening today. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.